The government has decided that the freemarket price of cheese is too low. a. Suppose the government imposes a binding price floor in the cheese market. Draw a supply-and-demand diagram to show the effect of this policy on the price of cheese and the quantity of cheese sold. Is there a shortage or surplus of cheese? b. Farmers complain that the price floor has reduced their total revenue. Is this possible? Explain. c. In response to farmers complaints, the government agrees to purchase all the surplus cheese at the price floor. Compared to the basic price floor, who benefits from this new policy? Who loses?
Bryce Bettag BUS 371-301 Essays & Case Studies Exam #2 Chapter 7 Discussion Questions 1. I believe Indiana State University does a fairly well job when it comes to competing for students in the marketplace. One of the main strategic plans that comes to mind for Indiana State is their Laptop Scholarship program. Any student that graduates from their high school with a 3.0 or higher receives a free laptop, and every year the laptop seems to make serious upgrades. The one I received freshmen year and am typing on now is a Lenovo ThinkPad touchscreen, which is a lot sleeker than the laptop my sister received her freshmen year in 2012. Another key marketing statistic Indiana State uses is the